Digital Social Currencies, Institutional Pressures and the Social Modeling of Technology

Almeida, Raquel Melo de; Vieira, Diego Mota; Luz, Flávio Diogo

doi:10.1590/1982-7849rac2023220091.en

Raquel Melo de Almeida

conceptualization

data curation

formal analysis

investigation

methodology

project administration

resources

supervision

validation

visualization

writing - original draft

writing - review & editing

Universidade de Brasília, Programa de Pós-Graduação em Administração, Brasília, DF, Brazil.

http://orcid.org/0000-0002-0735-6865

Diego Mota Vieira

conceptualization

formal analysis

investigation

methodology

project administration

supervision

validation

visualization

writing - review & editing

Universidade de Brasília, Programa de Pós-Graduação em Administração, Brasília, DF, Brazil.

http://orcid.org/0000-0003-1275-1648

Flávio Diogo Luz ^** Corresponding Author

formal analysis

resources

supervision

validation

visualization

writing - original draft

writing - review & editing

Universidade de Brasília, Programa de Pós-Graduação em Administração, Brasília, DF, Brazil.

http://orcid.org/0000-0001-7021-9970

* Corresponding Author

Editor-in-chief:

Marcelo de Souza Bispo (Universidade Federal da Paraíba, PPGA, Brazil)

Associate Editor:

Carolina Andion (Universidade do Estado de Santa Catarina, Brazil)

Authorship

Raquel Melo de Almeida

Universidade de Brasília, Programa de Pós-Graduação em Administração

Campus Universitário Darcy Ribeiro, qd-606 qd-607, Asa Norte, CEP 70910-900,Brasília, DF, Brazil

E-mail: raquel.melo@gmail.com

https://orcid.org/0000-0002-0735-6865

Diego Mota Vieira

Universidade de Brasília, Programa de Pós-Graduação em Administração

Campus Universitário Darcy Ribeiro, qd-606 qd-607, Asa Norte, CEP 70910-900,Brasília, DF, Brazil

E-mail: diego1mv@yahoo.com.br

https://orcid.org/0000-0003-1275-1648

Flavio Diogo Luz*

Universidade de Brasília, Programa de Pós-Graduação em Administração

Campus Universitário Darcy Ribeiro, qd-606 qd-607, Asa Norte, CEP 70910-900,Brasília, DF, Brazil

E-mail: flaviodl@gmail.com

https://orcid.org/0000-0001-7021-9970

Conflict of Interests

The authors have stated that there is no conflict of interest.

Reference	Dimension	Categories
Conceptual model of implementation of changes by ICTs (Pozzebon & Diniz, 2012Pozzebon, M., & Diniz, E. H. (2012). Theorizing ICT and society in the Brazilian context: A multilevel, pluralistic and remixable framework. Brazilian Administration Review, 9(3), 287-307. https://doi.org/10.1590/S1807-76922012000300004 https://doi.org/10.1590/S1807-7692201200... )	Context	Technological frameworks
	Process	Negotiation
	Content	Technology-in-practice

Reference	Categories	Subcategories
Reference	Strategies	Tactics
Organizational strategies in response to institutional pressures (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... )	Acquiescence	Habit / Imitate / Comply
	Compromise	Balance / Pacify / Bargain
	Avoid	Conceal / Buffer / Escape
	Defy	Dismiss / Challenge / Attack
	Manipulate	Co-opt / Influence / Control
Inclusive initiative strategies (Mendoza & Thelen, 2008Mendoza, R. U., & Thelen, N. (2008). Innovations to make markets more inclusive for the poor. Development Policy Review, 26(4), 427-548. https://doi.org/10.1111/j.1467-7679.2008.00417.x https://doi.org/10.1111/j.1467-7679.2008... )	Production, distribution, and marketing strategies	Standardize / Leverage flexible networks / Supply chain financing
	Retail and pricing strategies	Joint consumption / Flexible payments / Tiered pricing
	Cross-cutting business strategies	Contracting innovations / Dynamic incentives / Partnering / Real options strategies / Total product solutions

Research execution steps	Data sources	Type of data analysis	Related theoretical concepts and/or models
Historical survey of community banks	Official documents Media texts and videos In-depth interviews with semi-structured script	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Institutionalism (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... )
Identification of the legal framework	Official documents	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Institutionalism (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... )
Understanding how financial inclusion is promoted by community banks	Official documents Media texts and videos In-depth interviews with semi-structured script Structured interviews Observation	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Institutionalism (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... ) Organizational strategies of inclusive initiatives (Mendoza & Thelen, 2008Mendoza, R. U., & Thelen, N. (2008). Innovations to make markets more inclusive for the poor. Development Policy Review, 26(4), 427-548. https://doi.org/10.1111/j.1467-7679.2008.00417.x https://doi.org/10.1111/j.1467-7679.2008... )
Specification of facilitating and inhibiting factors related to the adoption of community banks by communities	Official documents Media texts and videos In-depth interviews with semi-structured script Structured interviews Observation	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Institutionalism (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... ) Organizational strategies of inclusive initiatives (Mendoza & Thelen, 2008Mendoza, R. U., & Thelen, N. (2008). Innovations to make markets more inclusive for the poor. Development Policy Review, 26(4), 427-548. https://doi.org/10.1111/j.1467-7679.2008.00417.x https://doi.org/10.1111/j.1467-7679.2008... )
Identification of the implementation process of ICTs associated with community banks	Official documents Media texts and videos In-depth interviews with semi-structured script Structured interviews Observation	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Structure of implementation of changes by ICTs (Pozzebon & Diniz, 2012Pozzebon, M., & Diniz, E. H. (2012). Theorizing ICT and society in the Brazilian context: A multilevel, pluralistic and remixable framework. Brazilian Administration Review, 9(3), 287-307. https://doi.org/10.1590/S1807-76922012000300004 https://doi.org/10.1590/S1807-7692201200... )
Discussion of prospective scenarios for community banks in the future horizon	Official documents Media texts and videos In-depth interviews with semi-structured script Structured interviews Observation	Basic content analysis (Bauer, 2002Bauer, M. W. (2002). Análise de conteúdo básica: Uma revisão. In M. W. Bauer & G. Gaskell (Eds.), Pesquisa qualitativa com texto, imagem e som: Um manual prático (pp. 189-217). Editora Vozes.)	Institutionalism (Oliver, 1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 https://doi.org/10.5465/amr.1991.4279002... ) Organizational strategies of inclusive initiatives (Mendoza & Thelen, 2008Mendoza, R. U., & Thelen, N. (2008). Innovations to make markets more inclusive for the poor. Development Policy Review, 26(4), 427-548. https://doi.org/10.1111/j.1467-7679.2008.00417.x https://doi.org/10.1111/j.1467-7679.2008... ) Structure of implementation of changes by ICTs (Pozzebon & Diniz, 2012Pozzebon, M., & Diniz, E. H. (2012). Theorizing ICT and society in the Brazilian context: A multilevel, pluralistic and remixable framework. Brazilian Administration Review, 9(3), 287-307. https://doi.org/10.1590/S1807-76922012000300004 https://doi.org/10.1590/S1807-7692201200... )

Strategy	Tactic	Identification	Before and/or after e-dinheiro
Compromise	Balance	Banco Mumbuca came to work within the City Hall in late 2013 and early 2014.	before
		Banco Mumbuca worked for a long time almost exclusively for the City Hall, from 2013 to 2017, as an intermediary for the payment of social benefits.	before
		There were restrictions on the types of commerce that could receive social currency.	before
	Pacify	Adaptation to the norms for operating with microcredit (the Instituto Banco da Periferia is a civil society organization of public interest [Organização da Sociedade Civil de Interesse Público - OSCIP] of credit).	after
	Pacify	Adaptation to the rules for operating with electronic currencies, in accordance with Law 12,865.	before and after
	Bargain	Adequacy between the interests of the public power in sponsoring a community bank with a social currency and the interests of community banks in establishing themselves with the support of the public power.	before and after
Defy	Dismiss	Technology accessible to the needy population.	after
		Dissemination of solidarity economy values.	after
		Humanized treatment with the neediest population.	before and after
		Credit for those who cannot get credit in the banking system.	after
		Less bureaucratic requirements.	after
	Challenge	Encouragement of local consumption.	before and after
		Belief in endogenous and solidary development.	before and after
		Promotion of greater circulation of the social currency in the territory.	after
	Attack	Dispute for space in the banking market.	after
		Opening of registration for all types of establishments and independent customers.	after
		Reinvesting all the money it earns in its own community in the form of microcredit or social actions.	after

Production, distribution, and marketing strategies	Standardize	De-bureaucracy in opening accounts for independent customers and merchants interested in operating with the digital social currency.
	Leverage flexible networks	ICT networks: use of digital social currency through the e-dinheiro platform. Community networks: social actions to involve the community more with the solidary economy and use of social networks to get closer to the community.
	Supply chain financing	Microcredit programs and local circulation of digital social currency.
	Simplify	Usability of the application considering the technological frameworks of the customers.
	Empower customers	Basic technological guidance focused on the use of the application or financial education guidance.
Retail and pricing strategies	Joint consumption	Microcredit groups with solidarity endorsement.
	Flexible payments	Considers the particularities of low-income borrowers.
	Tiered pricing	Zero interest lines of credit.
Cross-cutting business strategies	Contracting innovations	Digital social currency and use of cards based on NFC technology to replace magnetic cards used in POS machines. Solidarity endorsement as a way to reduce credit risk.
	Dynamic incentives	Assessment of credit progressivity according to the need and payment capacity of borrowers, as well as their history with the community bank.
	Partnering	Several partnerships: with the city of Maricá, with Instituto Banco da Periferia (and indirectly with the company MoneyCloud), with Caixa Econômica Federal.
	Real options strategies	Application of microcredit pilot projects.
	Total product solutions	e-dinheiro application was designed to serve the low-income population, offering the services that this population usually uses, such as bill payment, transfer of funds between users, payment in stores, and cell phone recharge.

Relevant social groups	Technological frameworks	Negotiation	Technology-in-practice
Government	Makes the payment of benefits; Promotes local development; It is part of the Municipal Solidarity Economy Program.	Between the government and Banco Mumbuca: Municipal Law 2,448, of 2013 - regulates the payment of benefits through a community bank using a digital social currency; Municipal Law 2,652, of 2015 - amends some terms of the previous law to increase the likelihood of program sustainability; Annual collaboration agreement between the Municipality of Maricá and Instituto Banco da Periferia.	The implications of adopting a digital social currency from 2013: It brought more security than paper currency for Banco Mumbuca (eliminates counterfeiting) and for the user (reduces the possibility of robbery). The implications of changing technology from old POS machines to the e-dinheiro platform from 2018: Promoted more stability in the operation of technology; Provided financial return for Instituto Banco da Periferia (which promotes microcredit and social actions based on this); Increased accessibility to technology (smartphones replacing old POS machines); It brought greater liquidity to merchants (possibility of transferring money at any time); Promoted greater user autonomy by expanding the services available (transfers, bill payment, cell phone recharge); Promoted greater autonomy by allowing payment in direct commerce through the application, without the need for an NFC smartphone.
Banco Mumbuca	Works on financial inclusion in its three dimensions; Promotes local development; Encourages solidarity economy.	Between Banco Mumbuca and merchants and beneficiaries: Social actions to approach the community; Use of WhatsApp as a way to approach the community; Microcredit programs with solidarity guarantee as a way to apply financial education in practice.
Merchants	Improves local trade; Help the poorest; They mostly see Banco Mumbuca as belonging to the government.	Between merchants and Banco Mumbuca: Less bureaucratic relationship than with banks in general; Quality in service.
Beneficiaries	Is responsible for paying the benefits; It helps to reduce poverty itself; They see Banco Mumbuca as belonging to the government.	Among the beneficiaries and Banco Mumbuca: Quality in service.

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[1] * Corresponding Author

Brasil

Brasil

Digital Social Currencies, Institutional Pressures and the Social Modeling of Technology

ABSTRACT

Objective:

Theoretical framework:

Methods:

Results:

Conclusion: